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MACHINE PLANNING Problem A company produces two products A and B using two machines X and Y. The company needs to plan the production over

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MACHINE PLANNING Problem A company produces two products A and B using two machines X and Y. The company needs to plan the production over three months. Each product can be produced in any of the machines. The machine-hours required for production, the production capacity (in hours) and the estimated product demand are given in the tables. The cost for using one machine hour is $30 and the cost of inventory-holding one unit of each product per month is $10. For example, producing 60 units of product A in machine A and none in machine B, during month 1, has a cost of $3600. Since only 50 units are needed in month 1, the extra 10 units can be hold in inventory for month 2 at a cost of $100. The company wants to decide the production plan in order to meet exactly the estimated demand in each month at the minimum overall cost of machine-hours and inventory-holding CapacityCapacity Demand Demand machine X machine Y product A product B Product A Product B on ne X on ne Y 250 80 100 2.0 1.5 50 100 50 30 60 50 140 2.5 2.0 60 150

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